In This Article:
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Retail Segment Gross Profit: Increased 16% to $63.2 million compared to $54.4 million in Q1 2024.
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Retail Fuel Margin: Increased 10% to $0.339 per gallon from $0.308 per gallon in Q1 2024.
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Same Store Retail Volume: Declined 4% year-over-year, adjusted to 3% for the leap year effect.
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Inside Sales: Down approximately 1.5% year-over-year; excluding cigarettes, declined 1%.
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Merchandise Gross Profit: Increased 16% to $24.9 million.
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Retail Site Count: Increased by 64 sites compared to Q1 2024.
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Wholesale Segment Gross Profit: Declined 1% to $26.7 million from $27 million in Q1 2024.
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Wholesale Fuel Margin: Increased 23% to $0.097 per gallon from $0.079 per gallon in Q1 2024.
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Wholesale Volume: Declined 11% to 162.9 million gallons from 184 million gallons in Q1 2024.
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Net Loss: $7.1 million compared to a net loss of $17.5 million in Q1 2024.
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Adjusted EBITDA: Increased 3% to $24.3 million from $23.6 million in Q1 2024.
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Distributable Cash Flow: Declined to $9.1 million from $11.7 million in Q1 2024.
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Operating Expenses: Increased $6.8 million year-over-year.
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Capital Expenditures: Total of $10.1 million, with $7.4 million in growth-related and $2.7 million in sustaining capital expenditures.
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Credit Facility Balance: $778 million with a leverage ratio of 4.27 times.
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Interest Expense: Increased to $12.4 million from $10.1 million in Q1 2024.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Retail segment gross profit increased by 16% to $63.2 million compared to the first quarter of 2024.
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Retail fuel margin improved by 10% year-over-year, reaching $0.339 per gallon.
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Wholesale motor fuel gross profit increased by 8% to $15.8 million.
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Successful conversion of lessy dealer sites to company-operated and commission agent sites, increasing retail site count by 64.
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Adjusted EBITDA increased by 3% from the prior year, indicating improved operational efficiency.
Negative Points
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Net loss of $7.1 million for the first quarter of 2025, although improved from a $17.5 million loss in the prior year.
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Retail same-store fuel volume declined by 4% year-over-year.
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Wholesale segment gross profit declined by 1% due to a decrease in fuel volume and rental income.
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Distributable cash flow decreased to $9.1 million from $11.7 million in the first quarter of 2024.
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Distribution coverage for the first quarter was 0.46 times, indicating challenges in covering distributions with cash flow.
Q & A Highlights
Q: Can you provide an overview of CrossAmerica's operational performance for the first quarter of 2025? A: Charles Nifong, CEO, stated that the first quarter was challenging, with subdued demand for fuel and inside store merchandise. Retail segment gross profit increased by 16% to $63.2 million, driven by higher motor fuel and merchandise gross profit. Retail fuel margin increased by 10% year-over-year. However, overall retail volume declined by 4% year-over-year, impacted by winter weather and calendar differences.